Bond Market Update

Range-bound

• The Treasury market has settled into a narrow trading range that maintains the earlier disposition of the front end of the curve outperforming the intermediate to long end of the curve.
• Stocks have also settled into a narrow trading range, albeit at sharply higher levels from yesterday's close. The Nasdaq Composite is up 2.8%, the Russell 2000 is up 2.1%, and the S&P 500 is up 1.9%. The Dow Jones Industrial Average and S&P 500 are trading at new record highs.
• The U.S. Dollar Index was stronger earlier, trading up to 101.47, but it has faded from those higher levels. It is currently up 0.1% to 100.71. 
  • The British pound is showing strength against the dollar (GBP/USD +0.5% to 1.3274) after the Bank of England voted to keep its key policy rate unchanged at 5.00%, one day after the Fed voted to cut its target range for the fed funds rate by 50 basis points to 4.75-5.00%.
• The Bank of Japan will be conducting its policy meeting overnight. It is not expected to implement any change to its current policy settings.
• Yield check:
  • 2-yr: +1 bp to 3.61%
  • 3-yr: +2 bps to 3.47%
  • 5-yr: +4 bps to 3.51%
  • 10-yr: +5 bps to 3.74%
  • 30-yr: +7 bps to 4.08%